No TDS
on Service Tax Component for payments to resident
Circular No.
01/2014 issued by CBDT on 13 January 2014 : CBDT
Clarified that TDS is not required to be deducted on the Service tax component
comprised in the amount payable to a resident if Service tax has been
charged separately wherever so provided by the agreement/ contract between the
payer and the payee.
Earlier it was
restricted to Service tax on Rent Only as per Circular
No 4/2008 dated 28 April 2008. In above mentioned circular CBDT clarified that
tax deduction at source (TDS) under sections 194-I of Income-tax Act would be
required to be made on the amount of rent paid/payable without including the
service tax. 